Why Consumers are Moving Away from Cash

Recent years have seen a major shift in consumer spending habits that has caught the attention of many businesses, with several looking set to embrace the unexpected shift. We are indeed talking about the increasing desire among consumers to move away from cash purchases, with many opting instead to pay using alternative, more modern options.

Initial reasons as to the change in preference have been suggested to include the following:

· Cash is not suitable for big purchases and many want to avoid expensive loans.

· Being tangible makes it more at risk of becoming damaged or lost.

· Paying with cash is very final, leaving little or no room to make a complaint or cancel the transaction should any problems arise.

· Cash is more susceptible to theft as there are no ways to formally identify the owner of the money should it be reported missing.

With consumers clearly losing confidence in cash, a number of solutions have emerged; some are now well established, others up-and-coming. They include:

· PayPal: The popular company is already recognised as a secure method to make payments online but they have recently announced their desire to take the idea further by incorporating cutting-edge fingerprint technology into their system, meaning you and only you could authorise spending on your accounts, making identity fraud and theft much more difficult.

· Plastic bank notes: These can last 2.5 times longer than the current paper notes in general circulation. They are easier to clean, making them more hygienic and with much greater levels of durability, they can even survive a cycle in a washing machine. Some countries in Europe already utilise such notes and 2015 is currently slated to see the arrival of them into mainstream spending in Britain.

· Credit cards: The good old credit card has long been a popular spending option and providers like American Express are taking note and giving consumers the incentives they want to opt for them. Cashback, gifts and reward schemes go hand-in-hand with the guaranteed purchase protection to make buying with plastic the way of the future. You can click here for more information on the kind of perks you can expect from a credit card and how to apply.

It seems clear that paper is being left in the shade somewhat as plastic and innovative technology are pushing boundaries and upping the ante when it comes to convenience and safety. In a time when people lead busy lives and more and more reports about stolen information, hacked accounts and fraudulent spending seem to emerge day by day, this is exactly what consumers want and thankfully, it seems this is exactly what they can expect to get.

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Julie Cheung / Finance Girl

Manchester blogger with an interest in personal finance, fitness and food. My posts revolve around saving/making money, things to do in and out of Manchester, and places to eat on a budget - but not always :-)